THE economy of Pakistan is the 47th largest in the world in nominal terms and 27th largest in the world in terms of purchasing power parity. Pakistan is South Asia’s second-largest economy, representing about 15 percent of regional GDP. Pakistan’s foreign exchange reserves amounted to $20.3 billion in January 2016. Exports during the fiscal year 2014-15 amounted to $23.7 billion. Being the sixth populous country in the world, having a young demographic profile, abundant availability of skilled manpower, rich mineral resources and bumper agriculture production, Pakistan is an attractive destination for investors. Pakistan falls among the middle income countries and presence of a large middle class provides vast local market to the business, as well.
Despite challenges in the recent past, Pakistan’s economy remains resilient. Our economy has achieved a five-year compound annual growth rate of 7 percent. Modern banking sector, growing industrial and agriculture sectors are making significant contribution in the national economy. There are numerous opportunities for foreign investors, especially in the engineering, power, manufacturing sectors and horticulture. The government aims to diversify the economy, therefore, an enabling investment environment for investors has been created in the country.
Pakistan has a strategic location that enables it to serve the market of over 2 billion people in China, India and Central Asia. Perhaps no other country has such a strategic location or claims such a great opportunity to businessmen and entrepreneurs. Pakistan is among the important emerging economies of the region, with a consumer base of around 195 million people and a prime location in the heart of Asia. In order to capitalize on its strategic location, Pakistan has adopted liberal and investor friendly policies, broad features of which include; proactive facilitation, guarantees of equal treatment to both local and foreign investors, easy tariff structures and a liberal regime on repatriation of profits. Almost all sectors of economy are open to investment with attractive incentives and liberal policies to give Pakistan an edge over all its regional competitors.
Pakistan is an investor friendly country and offers complete legal protection to foreign investment in all sectors. Foreign companies can start their business without any official approvals on 100 percent equity basis. The government has established Special Economic Zones (SEZs) to offer some additional benefits and facilities to the foreign investors. The foreign businesses can freely remit royalties, technical and franchise fee, capital, profits and dividends. To provide a hassle free environment, the Board of Investment (BOI), Government of Pakistan has almost become “One Window” operation to facilitate investors. The initiatives taken by the BOI to setup SEZs and other Industrial Zones further harnesses the investment and the BOI assures its full cooperation and support to the investors ready to come to Pakistan.
The government has declared the power sector as one of the top priorities for investment and is taking all necessary measures to build a more conducive environment by simplifying procedures to facilitate potential investors. At present, Pakistan’s total installed generation capacity from hydroelectric, thermal, independent power producers, and Nuclear sources stands at 19,566 MW. The existing capacity of thermal power generation in Pakistan stands at 12,630 MW, which is almost two-third (64.6 percent) of the country’s total generation capacity. Hydel energy is the second-largest source of electricity and accounts for 33.1 percent of total power generation in the country. The rapid economic growth over the past few years has led to a power shortage in Pakistan and the country today is looking for investment in power production to meet its short and long term power needs. Solar and Wind Power sector may also be explored by potential investors.
The financial sector of Pakistan is regarded as one of the best performing sectors in our region. The banking sector has shown robust performance and so have the stock markets. The contribution of the service sector in the growth of the economy has been almost 60 percent over the last few years. The financial sector has also attracted significant attention from the foreign investors in the recent past and still holds sufficient potential.
We avail this opportunity to invite Filipino investors to visit the Board of Investment for consultation to do business in Pakistan, where stellar profits are awaiting the prospective Filipino investors. The Embassy of Pakistan, Manila and Board of Investment Government of Pakistan assures you of its full support and commitment to facilitate all your investment needs. Board of Investment can be contacted online at www.pakboi.gov.pk.